David Rolfe (Trades, Portfolio), the portfolio manager of Wedgewood Partners’ portfolio, reported his fund’s first quarter portfolio last week. The guru’s first quarter holdings highlighted two new buys, bringing the total stocks held to 21 valued at over $5.4 billion. The following five stocks represent Rolfe’s top five holdings at the close of the first quarter.

Rolfe’s largest holding is in Berkshire Hathaway where he maintains 4,347,827 shares of the company’s stock. This position represents 10.1% of his total portfolio as well as 0.19% of Berkshire’s shares outstanding.

Over the past quarter Rolfe increased his holdings 61.09% by purchasing 1,648,861 shares of the company’s stock. He bought these shares in the quarterly price range of $108.78 to $125.20, with an estimated average quarterly price of $116.85 per share. Since then the price per share has increased approximately 8.5%.

Rolfe’s historical holding history:

Berkshire Hathaway is a conglomerate holding company owning subsidiaries engaged in a number of business activities, including property and casualty insurance and reinsurance, utilities and energy, finance, manufacturing, service and retailing.

Berkshire Hathaway’s historical revenue and net income:

The analysis on Berkshire Hathaway reports that the company’s price is near a 10-year high, it has shown predictable revenue and earnings growth and its operating margin is expanding.

The Peter Lynch Chart suggests that the company is currently overvalued:

Berkshire Hathaway has a market cap of $297.7 billion. Its shares are currently trading at around $127.34 with a P/E ratio of 15.50, a P/S ratio of 1.60 and a P/B ratio of 1.30. Berkshire Hathaway had an annual average earnings growth of 9.20% over the past ten years.

GuruFocus rated Berkshire Hathaway the business predictability rank of 3-star.

The guru’s second largest holding is in Apple where he holds on to 957,303 shares of the company’s stock. This holding makes up for 9.5% of his total portfolio as well as 0.11% of the company’s shares outstanding.

Over the past quarter Rolfe increased his position 9.19% by purchasing 80,541 shares of the company’s stock. He bought these shares in the quarterly price range of $499.78 to $561.02, with an estimated average quarterly price of $532.60. Since then the price per share has increased approximately 17.5%.

Rolfe’s holding history as of the close of the first quarter:

The company designs, manufactures, and markets personal computers, mobile communication devices, and portable digital music and video players and sell a variety of related software, services, peripherals and networking solutions.

Apple’s historical revenue and net income:

The analysis on Apple reports that the company’s revenue per share has slowed down over the past year, its price is near a 1-year high and the company holds enough cash to cover all of its debt.

The Peter Lynch Chart suggests that Apple is currently undervalued:

Apple has a market cap of $537.51 billion. Its shares are currently trading at around $624.01 with a P/E ratio of 14.90, a P/S ratio of 3.20 and a P/B ratio of 4.30. The company has seen an annual average earnings growth of 63.60% over the past 10 years.

Rolfe’s third largest holding goes to Express Scripts where he holds on to 4,959,737 shares of the company’s stock. This position represents 6.9% of his total portfolio as well as 0.61% of the company’s shares outstanding.

During the first quarter Rolfe increased his holdings 21.53% by purchasing 878,799 shares of the company’s stock. The guru added these shares in the quarterly price range of $69.84 to $78.64, with an estimated average quarterly price of $74.88. Since then the price per share has dropped approximately -5.6%.

Rolfe’s historical holding history:

Express Scripts operates as a Pharmacy benefit management in North America, offering a full range of services to its clients, which include HMOs, health insurers, third-party administrators, employers, union-sponsored benefit plans, workers' compensation plans and government health programs.

Express Scripts’ historical revenue and net income:

The analysis on Express Scripts reports that the company’s revenue per share has been in decline over the past year, its asset growth is faster than its revenue growth and its operating and gross margins have been in decline over the past five years.

The Peter Lynch Chart suggests that the company is currently overvalued:

Express Scripts has a market cap of $54.99 billion. Its shares are currently trading at around $71.08 with a P/E ratio of 32.00 and a P/S ratio of 0.60. The company had an annual average earnings growth of 25.70% over the past 10 years.

GuruFocus rated the company the business predictability rank of 4.5-star.

David Rolfe (Trades, Portfolio)’s fourth largest holding is in Qualcomm where he maintains 4,677,079 shares of the company’s stock. This position makes for 6.8% of the guru’s portfolio and 0.27% of Qualcomm’s shares outstanding.

Over the past quarter Rolfe upped his stake in Qualcomm 6.38% by purchasing 280,493 shares of the company’s stock. He bought these shares near the estimated average quarterly price of $75.31 per share. Since then the price per share has increased approximately 7%.

Rolfe’s historical holding history:

Qualcomm develops designs, manufactures and markets digital wireless telecommunications products and services. The Company is a developer and supplier CDMA-based integrated circuits and system software for wireless voice and data communications, multimedia functions and global positioning system products to wireless device and infrastructure manufacturers.

Qualcomm’s historical revenue and net income:

The analysis on Qualcomm reports that the company’s price is close to a 10-year high, it’s operating margin is expanding, it has shown predictable revenue and earnings growth, and the company holds no debt.

Qualcomm has a market cap of $135.79 billion. Its shares are currently trading at around $80.45 with a P/E ratio of 20.10, a P/S ratio of 5.40 and a P/B ratio of 3.50. The company had an annual average earnings growth of 14% over the past ten years.

The guru’s fifth largest holding is in EMC Corp. He holds on to 12,876,644 shares of the company’s stock, representing 6.5% of his total portfolio as well as 0.62% of the company’s shares outstanding.

During the first quarter Rolfe increased his holdings 5.03% by purchasing 616,813 shares of the company’s stock. He bought these shares in the quarterly price range of $23.66 to $28.18, with an estimated average quarterly price of $26.00. Since then the price per share is up approximately 1.8%.

Rolfe’s holdings as of the close of the first quarter:

EMC and its subsidiaries develop, deliver and support the Information Technology industry's a range of information infrastructure and virtual infrastructure technologies and solutions.

EMC’s historical revenue and net income:

The analysis on EMC reports that the company’s revenue has slowed down over the past year, they have issued $3.7 billion of debt over the past three years and its operating margin is expanding.

The Peter Lynch Chart suggests that the company is currently overvalued:

EMC Corporation has a market cap of $54.38 billion. Its shares are currently trading at around $26.56 with a P/E ratio of 21.00, a P/S ratio of 2.40 and a P/B ratio of 2.50. The company had an annual average earnings growth of 14.50% over the past ten years.

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